What to Save for When Buying a Home: A Smart Homebuyer’s Guide
Buying a home is one of the most exciting milestones you’ll ever reach - but it’s also a big financial step. Knowing what to budget for up front can make the process feel less overwhelming and far more empowering. At the Price Group, our goal is to guide you through every stage so you know what to expect, plan with confidence, and enjoy the journey.
Here are three key savings areas every homebuyer should keep in mind:
Down Payment:
Your down payment is usually the first thing you think about - but the truth is, you may not need as much as you think. Many buyers assume 20% is required, but in reality, there are loan options available with as little as 3.5% or even 0% down.
This is where partnering with a trusted lender matters. They’ll walk you through available loan programs, down payment assistance options, and what works best for your unique financial situation. With the right guidance, you can find a path forward that aligns with your goals.
Closing Costs:
In addition to your down payment, plan for closing costs, which are fees due at settlement and typically range from 2% to 5% of the loan amount. These cover things like your appraisal, title insurance, and loan processing.
Your lender will help you estimate these costs early on so there are no surprises. And at The Price Group, we make sure you fully understand the details so your closing day feels smooth and stress-free.
Earnest Money Deposit:
An earnest money deposit (EMD) is another item worth preparing for. Typically, 1–2% of the purchase price, this deposit shows the seller you’re serious about buying their home. The good news? It’s not an additional cost - it’s applied toward your down payment and closing costs once the deal goes through.
While an EMD isn’t always required, it can strengthen your offer in a competitive market. Your agent will guide you on whether it makes sense based on your situation.
The key to a smooth homebuying experience is preparation and understanding what lies ahead. By planning for your down payment, closing costs, and any potential earnest money, you’ll be ready to move forward with confidence. With a trusted lender and an experienced Price Group agent guiding you, you’ll have the insight and support to make smart financial decisions and find a home you truly love.